Stages of Product Development
View this page to read more on the rise in economic activities worldwide. New product inventions is associated with stiff competition from existing products. It is also vital to note that product development involves these major steps. The main reason why most people engage in product invention is to maximize profits. The length of time a product is introduced to when it is removed from the market, there are five major stages involved.
For every new business beginner, see here to learn more on what product development entails. At this stage, the business has to source for extra funding from external sources. You will find that cash outflows are greater than inflows at this stage since there is a small market. You can also consider seeking financial assistance from friends and family at this point.
Secondly, product development begins with introduction stage. It is required that after product invention, a business owner should look into campaign ads and marketing measures. Marketing will increase product awareness in the market. In addition, there are product promotion measures that will suit your kind of product.
Product development cycle involves growth after it is introduced I the market. Due to the marketing strategies applied in phase one, there will be more demand hence increased production and sales. You will find that there are many raw materials, machinery and equipment to beaded in the growth stage. Apart from machinery, there is need to hire more sales persons and production team. Every business manager needs more know-how on dealing with employees, and this explains how.
The fourth critical stage in product invention is the maturity phase. As you have learnt, the product has already been introduced and manufactured in the two previous stages, hence you can save more in the maturity phase. You find that if you have invested and put maximum efforts in the first two phases, you are only left with daily operating expenses. You will find that since there are many substitutes for your product, the sales will not be as high since people are now going for more affordable products. It is advisable to conduct more market research and bring in more innovative strategies, improving the product so that it remains highly competitive in the market.
Economists agree to the fact that for every new product, there comes a time when it goes through the decline phase. During decline, there are low sales hence decrease in revenue. It is at this stage where you find competitive products selling more than before. At the decline stage, business owners can opt for discontinuing the product, business franchising, product innovations, finding new uses or exporting the product. Click on this website to discover more on companies that offer advisory and business consultancy services.
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